Running head: PEPSICO 1
PepsiCo
Allen Schmidt
National University
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PepsiCo
The contemporary world of business is a complex system of enterprises aimed at
contributing to the development of the society. However, there are many cases when
companies do not follow basic rules, which will help to maintain balance between the
company’s development and its influence on the welfare of the surrounding world. Mainly,
most companies strive to take care of the environment and overall health of the humanity.
However, there is a list of companies, which neglect taking into account health and
environmental issues caused by the company’s irresponsible business activity. PepsiCo is one
of the companies, which does not take enough care of its customers and territories of their
habitat. It is a sad fact that the company has marketing and PR strategies, which are stronger
than its desire to develop according to the basic principles of environmental sustainability.
The company has a diversity of issues, which worry minds of millions of people all over the
world. Consumers always tend to worry about their environment. However, consumers have
never paid much attention to the other side of the company’s activity. Advertising has become
a diversion of the customer’s attention from main problems of the environment. Indra Nooyi,
PepsiCo’s CEO, seems not to care much about the company’s negative impact. It is important
to investigate the company’s impact on the surrounding world and to conclude by making
suggestions to the CEO about the threat to the world’s sustainability and welfare.
PepsiCo is one of the companies causing a range of environmental problems.
Deforestation is the main issue causing a variety of other problems. For example,
deforestation leads to land grabs, species extinction, and global warming. In addition,
PepsiCo uses GMO elements in its production. Privatization and labor busting take other
forms of the company’s irresponsible behavior. Business activity cannot build upon
irresponsible behavior. There is much evidence proving that the company has enough
problems with its sustainable development. Deforestation is one of the main issues, which the
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company should take into consideration. The company must pretend it is blind if it still has
not taken care of the surrounding world. In order to address the issue it is necessary to turn
the company’s attention to the problem and help it take action in order to reduce its negative
influence on the society. If the company is willing to win loyalty of its customers, it needs to
establish an effective system of measures and procedures, which will change the world’s
development.
One of the articles proving that the company does not pay much attention to its
negative impact on the society is the article written by Robert Hii. This article centers on the
company’s marketing campaign, which encourages consumers to ‘live for now’. It has
become the main slogan of the company’s performance drawing attention of customers since
2012. This slogan has become the foundation of the brand’s perception all over the world. It
has established a way the company behaves. Positioning of the company is centered on its
current performance without accounting for the future performance. Many critics mention the
company’s slogan in their judgments proving that the company has a diversity of problems
with environmental sustainability. In addition, it means that the company does not take care
of tomorrow. The company is willing to live for today and it does not think about
consequences of its activity on the development of the society. Deforestation is the main
issue, which creates many problems in dozens of countries. Mainly, deforestation concerns
the problem of development of Indonesia. PepsiCo cuts many trees there in order to get palm
oil. According to Hii (2014), “The company includes among its many brands, popular snack
items like Lays potato chips, Quaker oats and Cheetos, which explains why the company uses
some 450,000 tons of palm oil annually.” The company tends to extend its product line at the
expense of the world’s environmental sustainability. It uses an excessive amount of palm oil,
which destroys both health and environment. According to the News Tribune article
“Expanding Palm Oil Plantations Threaten Endangered Species” (2014), “Packaged-food
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makers prize this versatile oil because it gives their products a smooth, creamy consistency, is
trans-fat free and acts as a natural preservative giving products a long shelf life.” On the one
hand, it is an effective component that helps the company produce goods, which can remain
on a shelf of the store without being spoiled for a long time. On the other hand, it is
impossible to create a healthy product, which will not harm the customer’s health because of
the long-term shelf life.
Rainforest Action Network worries about the company’s negative impact on the
development of many tropical countries where PepsiCo cuts trees in order to get palm oil.
The slogan of the company puts the company’s performance at doubt. It means that the
company will not take much care about tomorrow. It cuts trees thinking only about today
without paying attention to the problems of tomorrow. Environmental groups are worried
about issues caused by PepsiCo. Moreover, many critics claim that PepsiCo does not take
